Public Finance

Report of Senate Joint Memorial 12 Retirement Income Security Task Force
October 31, 2018
Underinvestment in retirement savings nationwide creates the potential for fiscal challenges as states must face the prospect of relying on public funds to fulfill the needs of aging populations (Trostel, 2017). States with a high percentage of low-income workers are especially vulnerable because those individuals are less likely to have adequate retirement savings. The data suggest that New Mexico has a relatively lower percentage of private-sector workers who have a retirement plan available to them through their employers compared to the rest of the nation.
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New Mexico Taxes and Economic Development Whitepaper
May 25, 2016
The State’s tax system has a major structural problem and it relates to the gross receipts tax. New Mexico enacted an Emergency School Tax in 1935 to fund public schools with a state-level sales tax. In most states, public education is funded with local property taxes but in 1935 a statewide sales tax was chosen because it was the only tax capable of raising the revenue required. Later, New Mexico instituted a public school funding formula to deal with the inequalities in public school funding capacity across the State. Together, these actions firmly fixed the responsibility for funding public schools on the State’s General Fund.
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Economic Analysis of New Mexico's Sustainable Building Tax Credit
December 1, 2014
An analysis of New Mexico's Sustainable Building Tax Credit and its impacts on the NM economy, household expenditures, and the environment.
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Estimating the Impacts of the Elective Single Sales Factor and Marginal CIT Rate Provisions
January 21, 2014
This report is concerned with two changes that were made to NM's corporate income tax in 2013, the phased in reduction to the marginal corporate income tax rate, which over 5-years will lower the maximum corporate rate. (Authors: Lee Reynis, Michael O'Donnell)
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Impacts of the Debt Control Act of 2011 on the NM Economy
December 1, 2012
The Debt Control Act, negotiated by Congress and the President in August 2011, calls for at least a $2.2 trillion reduction in federal government spending through 2021. Although the details have been left resolved pending negotiations to be concluded in November, the Act does necessitate cuts of $917 billion in the first tranche and additional cuts of at least $1.2 trillion to follow. In this brief section, we estimate the potential impacts of these cuts on New Mexico?s economy, using assumptions based on the general terms of a sequestering process that is to go into effect if negotiations fail to offer alternative budgetary outcomes.
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Economic and Fiscal Impacts of the Proposed Medical Expansion in New Mexico
October 31, 2012
This brief analyzes the economic and fiscal impacts of the Medicaid Expansion in New Mexico. Under the Patient Protection and Affordable Care Act (ACA) as enacted on March 23, 2010, states were required to extend Medicaid coverage to low-income adults under 65 years old with incomes up to 133% percent of the poverty level (138% after income disregards). However, the Supreme Court held that the federal government cannot withhold current Medicaid funding should a state decide to opt out of the Medicaid Expansion. At this time, New Mexico has not decided whether to implement the Medicaid Expansion. (Authors: Lee Reynis)
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Forecasting New Mexico's Oil & Gas Revenues: The Impact of Technology Change
April 17, 2012
Recent technological improvements in horizontal drilling technologies, in particular the development of a steerable GPS-guided bit, have altered New Mexico's oil industry. As a result, patterns in oil revenues are changing and the revenue estimation process used in recent years by the New Mexico State Land Office (SLO) is not performing as reliably as it once did. The SLO has contracted the University of New Mexico's Bureau of Business and Economic Research (BBER) to assist in identifying approaches and methods of forecasting SLO revenues from oil and gas renewable sources (i.e., bonus payments) and non-renewable sources (royalty income). (Authors: Gwendolyn Aldrich)
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Oil and Gas Revenue Forecasting: New Mexico State Land Office
July 1, 2011
The UNM Bureau of Business and Economic Research (BBER) was requested by the State Land Office to explore alternative methodologies for estimating oil and gas renewable revenue sources (bonus payments, rents and interest earnings) as well as non-renewable sources (royalty income).
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Federal American Recovery and Reinvestment Act Stimulus Funding on Economy
December 1, 2010
This report examines the impacts of the American Recovery and Reinvestment Act (ARRA) on the economy of New Mexico. ARRA has allocated $5.7 billion to New Mexico, of which over $2.6 billion had been spent through June 30. 2010. (Authors: Lee Reynis, Doleswar Bhandari)
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Options for Funding Local Library Operations (Including Collections) in New Mexico
April 1, 2010
This is a study of financing options for the operations of local libraries in New Mexico, whether these libraries are run by municipalities, counties, as a cooperative city-county effort, by non-profit organizations, by Native American tribes or by regional authorities as yet to be constituted. Our concern has been with the 93 local libraries that currently comprise the State Library system. We have not considered libraries in public schools, nor those in our colleges and universities, although surely these are important resources to local communities and not just to those who are fortunate enough to be students, staff or teachers/faculty at these institutions. The primary concern is with funding for library operations, by which we understand on-going needs: salaries and benefits for library staff, operations and maintenance of library facilities, utilities and other expenses associated with operations, and, critically, books and media. This is not to deny the importance of adequate facilities, but wonderful facilities are of little worth unless one can keep the doors open, a staff paid and unless one has product, most notably books and media, but also cultural and other programming to draw patrons of all ages. (Authors: Lee Reynis, Molly Bleecker, Sean Petranovich)
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The Transition from Incorporated Community to Municipality in the South Valley
June 1, 2008
The South Valley is a diverse area at the heart of the rural-urban interface in the Middle Rio Grande Valley. The proposition of forming a municipality in this area is full of possibility and rife with challenges. This report is an attempt to begin fleshing out the nature of what the community may face should it choose to incorporate. Part One is a historical review of incorporation in New Mexico and the Southwestern United States. Part Two is an examination of geographical, social and political issues unique to the South Valley study area. Part Three is an examination of possible partnerships that will be needed for the success of a new municipality. (Author: Joshua M. Akers)
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Comparative Analysis of Reform Options for Extending Health Care Coverage in New Mexico
July 31, 2007
The Health Coverage for New Mexicans Committee requested that Mathematica Policy Research, Inc. estimate the cost of the current health care system in New Mexico and the relative cost of three alternative strategies to ensure that all New Mexicans become and remain insured. To develop estimates that would help the Committee compare reform models on the same basis, we needed to develop relatively precise specifications for key components of the models. (Deborah Chollet, Su Liu, Beth Gillian, Paul Biderman, Lee Reynis, William Wiese)
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